Canadian homebuilding beats expectations in May
Canadian housing starts picked up more than expected in May and April was revised higher, suggesting housing will contribute to economic growth in the second quarter after a harsh winter put the brakes on construction, data released on Monday showed.
A recent report from the Canada Mortgage and Housing Corporation (CMHC) indicates that housing starts in May exceeded original expectations. The seasonally adjusted annualized rate rose to 198,324 from an upwardly revised 196,687. Analysts expected 185,000 for the month of May.
It is the belief that 2014 will trend closely to the activity of the previous year, as the market seems to be back in balanced territory after a particularly drawn-out winter season.
The bulk of housing starts in May were attributed to single detached homes as starts rose in this sector. Condominium starts were lower in May.